The accounting Income of Grace Corporation and its taxable income for the years 2023 to 2026 are as follows: Year Accounting Income Taxable Income Tax Rate 2023 $460,000 $299,000 25% 2024 420,000 294,000 30% 2025 390,000 304.200 30% 2026 460,000 644,000 30% The change in the tax rate from 25% to 30% was not enacted until early in 2024 Accounting income for each year includes an expense of $40,000 that will never be deductible for tax purposes. The remainder of the difference between accounting income and taxable income in each period is due to one reversing difference for the depreciation of property, plant, and equipment. No deferred taxes existed at the beginning of 2023 (a) Your answer is partially correct. Calculate the current and deferred tax expense or benefit for each of the four years. Also calculate the balance of the deferred tax balance sheet account at the end of each fiscal year from 2023 to 2026 (Show asset and benefit numbers as positive, and liability and expense numbers as negative) 2023 2024 Current tax expense 74250 88200 Deferred tax asset/liability) -13450 Deferred tax (expense)/benefit 13450 36000 21 (b) Prepare journal entries to record income taxes in all four years. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record journal entries the order presented in the problem) Date Account Titles and Explanation (To record current tax expense) (To record deferred tax expense) Debit Credit Prepare the bottom of the income statement for 2024, beginning with the line "Income before income tax" (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) GRACE CORPORATION (Partial) Income Statement December 31, 2024 Current Income Tax Benefit List of Accounts $ Save for Lanar Last saved 1 second ago! Attempts: unlimited Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes